Operating a food truck, courier service, around town deliveries, heavy duty specialty work, construction and excavation, removals or general haulage, whatever your business you’ll be looking for a great deal to finance your truck purchase.

Commercial Truck Finance

The size doesn’t matter, whether it is an 18 wheel full rig for interstate runs or a van style vehicle for inner city courier work, both new and used trucks can be financed through a selection of commercial loan products including Chattel Mortgage, Commercial Hire Purchase and Truck Lease packages.

So which one is right for you?

Can a sole operator source commercial finance products?

Yes you can – whether you’re a sole operator contract driver or owner of an entire fleet, you can take advantage of a very attractive range of options available for truck finance.

Selecting, which is the right option for your purchase depends on your accounting method, how you account or GST, ie on a cash or accruals basis and business operations and your finance broker will advise you of the specifics of each loan type.

Here’s a brief overview of the available options for business loan applicants:

Commercial Hire Purchase (CHP)

CHP involves the lender purchasing the truck and then hiring to you for a set monthly repayment amount. In reality, you take possession of the truck as soon as its purchase and can operate it to your own requirements, subject to any special clauses of course.

When the final payment is made, the lender signs over ownership of the truck to you.

Chattel Mortgage

As the name infers, a chattel mortgage is essentially a mortgage on your truck. You organise a loan to cover the purchase of your truck and the lender takes out a mortgage over your truck until the loan is repaid.

This is one of the most popular loan products for commercial vehicles.

Truck Leasing

Leasing involves the same set-up in principle as the other products, ie you borrow the money and repay a set amount over a set period, but in this case the ownership of the truck remains with the lender until you have completely repaid the loan.

Commercial truck finance products all feature a set monthly repayment, usually over 12-60+ months and a residual or balloon amount which is payable at the end of the loan

Personal Truck Loans

If you are a sole trader, self-employed and don’t have a corporate structure, it may suit you better to apply for a personal loan for your truck purchase.

You can get a ballpark estimate on your truck loan using an online truck finance calculator

Here’s some links to follow up with experts to discuss which truck finance deal is best suited to your requirements